Finance Director: Colin Spencer

Overview:  Environmental/ecological consultancy

Issue:  Inaccurate and inconsistent management accounts, slow response from existing accountant and no strategic guidance/advice.

Corrective Actions:

  • Bookkeeper was removed and replaced with an external bookkeeping company who check all balance sheet accounts on a monthly basis
  • External accountant was replaced with an alternative, highly recommended practice
  • Set up chart of accounts in Sage to ensure that company and divisional profitability easy to monitor
  • Initially set up budgets and then profit forecasts that linked into balance sheet and cashflow forecasts for the year
  • Made the Directors more aware of the ongoing cashflow situation, with weekly bank reconciliations and forecasts
Improvements since action taken:
  • Increased accuracy in financial information
  • Increased awareness of cash situation which has lead to appointment of a part time credit controller
  • Quick turn around of year end accounts
  • Reduced price for external accountant and provision of a year end file with all relevant information
  • Working with Directors to explore new job costing system to give better understanding of client and job profitability